According to information from the FMDQ exchange platform, the value of the Nigerian naira on the foreign exchange market on Tuesday remained stable at N1339 per US dollar. The naira is under less pressure than it was recently.
The FMDQ Exchange rate displayed N1339.33 per greenback at the time the article was filed, however the Apex Bank website displayed an average rate of N1382. The local currency is in a position to recover losses it has previously suffered versus the US dollar as a result of FX liquidity issues.
According to some observers, the significant increase announced at the start of the week indicates a decrease in FX market speculation. A positive trend in the exchange rate versus the US dollar was initiated due to better foreign cash inflows.
Last week, the Central Bank sold about N1.2 trillion worth of Treasury bills in the primary market auction. Analysts suggest the surge in liquidity was driven by bids from foreign investors, as the monetary authority continues to offer attractive rates on naira assets.
Nigeria’s foreign reserves recorded first decline in weeks. The nation’s gross external reserves decline to $32.694 billion on Monday from $32.734 billion. There has been accretion into external reserves since April 19, when the balance hit a low of $32.016 billion. The recent decline has been attributed to renewed efforts to stop the exchange rate from getting worse.
The naira has slumped to N1533 in the second quarter of 2024. The naira had outperformed global currency in April. Today, pressure in the informal market eased, albeit, slightly.
The naira strengthened by 0.33% in the parallel market, ending at N1,495 per US dollar amidst a registration notice handed to Bureaux de Change operators by the Central Bank.
In the global commodity market, oil prices continue an upward trend amid expectations of stronger oil demand in the U.S., following the release of real-time mobility data.
